Index Performanceupdated through 5/17/2013
The Rogers International Commodity IndexÂ® (â€śRICIÂ®â€ť) is a composite, USD based, total return index, designed by James B. Rogers, Jr. in the late 1990s. The index was designed to meet the need for consistent investing in a broad-based international vehicle; it represents the value of a basket of commodities consumed in the global economy, ranging from agricultural to energy and metals products. The value of this basket is tracked via futures contracts on 37 different exchange-traded physical commodities, quoted in four different currencies, listed on twelve exchanges in five countries. RICIÂ® aims to be an effective measure of the price action of raw materials not just in the United States but also around the world. Indeed, the indexâ€™s weights attempt to balance consumption patterns worldwide (in developed and developing economies) and specific contract liquidity.
The index is designed to offer stability, partly because it is broadly based and consistent in composition, and to meet a need in the financial spectrum currently not effectively covered.
The Rogers International Commodity Indexes are maintained and reviewed by the members of the Rogers International Commodity IndexÂ® Committee: A group of â€świse peopleâ€ť just as are the people who determine the Dow Jones Averages and other major indexes.
For the sake of transparency, consistency, and stability, composition changes are rare, and generally occur only after significant shifts in the world economy or markets. When such an event necessitates that one component be modified, the entire index is reviewed. The Committee members monitor the Indexes daily in case of needed changes. The Committee meets formally in December of each year to assess the Indexes and make any necessary changes.
The Committee of wise people bases its selection on world consumption patterns and liquidity. Other indexes show regular dramatic changes in weights and compositions meaning investors never know in what they are investing. This is not the case with the Rogers International Commodity IndexÂ®, which is stable, consistent and transparent. An investor in the Rogers Indexes always knows what he or she is getting, unlike others.1
1 See, e.g., the statement of methodology for the Dow Jones Industrial, Transportation and Utilities Averages: â€śThe Dow Jones Industrial, Transportation and Utilities Averages are maintained and reviewed by editors of The Wall Street Journal. For the sake of continuity, composition changes are rare, and generally occur only after corporate acquisitions or other dramatic shifts in a componentâ€™s core business. When such an event necessitates that one component be replaced, the entire index is reviewed. As a result, multiple component changes are often implemented simultaneously. While there are no rules for component selection, a stock typically is added only if it has an excellent reputation, demonstrates sustained growth, is of interest to a large number of investors and accurately represents the sector(s) covered by the average.â€ť (Source: http://www.djaverages.com/?view=about&page=overview).